just had my IVA rejected is br a better option ?

[henrdyog]

HI I have just had my IVA rejected because HMRC thre major creditor are being difficult, and requesting a further house valuation, im in neg equity with chraging orders and a secured loan.

I am using gt, who have set the dividend below 25p, I thought that it had to be greater than 25 p

I have no assests car. etc house is in neg equity with charges and a 5year fixed mortgage. is bankrupcy a better option for me

thanks

[Viki.W]

Hey henrdyog, welcome to the forum. Sorry to here about your IVA. Has your IP at Grant Thornton advised you on what to do next? The dividend is pretty much what you can really afford and some are approved at a much lower dividend than 25p so that might not be the problem. Please hang in there and the experts will be along to advise you. Viki X

[MelanieGiles]

Hi there and welcome to the forum

If GT cannot get the proposal accepted, I would be suprised if anyone else could - but what is the problem in providing HMRC with another valuation? In my experience, the people who operate on the voluntary arrangements section for HMRC are very fair and commercial, so I would be suprised if they would reject and IVA in favour of a bankruptcy.

Is your compliance record with them OK, as they sometimes do take a moral viewpoint if there are lots of tax or VAT returns outstanding.

[Lisa2009]

I have to agree with Melanie.
Why not get another valuation done and see if they accept then?

[janderson]

Hi

We fully sympathise our IVA was turned down and we are now starting a DMP. The calls and letters have started again and they do not listen to thing you say to them. We find that the attitude hardens or they do not understand a DMp. Some are not happy because they are not going to get much money back once the payments are pro ratered.

Hold out and keep trying I know we will re submit later.


Thanks

John[8]

[kallis3]

John, with DMP your creditors will be getting all their money back (minus any interest and charges they may have frozen), it just takes much longer. Doesn't matter that the payments are pro rata.

When I was DMP, one of mine was going to take me 19 years to pay back, but they would have had all the money,rather than the percentage they will now get back with IVA.